The Implementation of ESG Practices: A Case Study of Batik Small and Medium-sized Enterprises in Lasem

Environmental, Social, and Governance (ESG) implementation is increasingly relevant for small and medium enterprises (SMEs), especially in traditional industries such as batik. This study examines how five batik SMEs in Lasem implement ESG practices based on nine key topics of the Simplified ESG Disclosure Guidelines (SEDG). Using a qualitative approach, this study collected data through in-depth interviews and observations to understand how ESG principles are applied in business practices. The findings show that Lasem Batik SMEs have adopted several aspects of ESG, especially in material waste management, worker health and safety, and community engagement. However, governance aspects such as risk reporting and anti-corruption policies are still not well structured. This study provides insights into the challenges and opportunities in implementing ESG in the traditional SME sector and its implications for the sustainability of the batik industry.